Alamos Gold lowers Q2 production guidance for Young-Davidson mine to 130,000-135,000 ounces due to operational disruptions and higher costs.
Alamos Gold Inc (TSX:AGI, NYSE:AGI) reduced its second-quarter production guidance for the Young-Davidson mine to 130,000-135,000 ounces, down from 155,000-175,000 ounces. The revision follows seismic activity, power outages, and lower grades, which have elevated costs and disrupted output.
The mine has faced three consecutive quarters of underperformance, prompting concerns about operational consistency. Management expects reduced mining rates to persist through 2026, potentially pushing annual production below guidance and costs above forecasts.
Island Gold remains a critical growth driver for Alamos, with its ramp-up offsetting some of Young-Davidson’s challenges. Analysts view the current disruptions as temporary but emphasize the need for stability at Young-Davidson.